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Fortis Healthcare Ltd on Friday (November 8) reported a 1.6% year-on-year (YoY) increase in net profit at ₹176.5 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, Fortis Healthcare posted a net profit of ₹173.7 crore, the company said in a regulatory filing. Revenue from operations increased 12.3% to ₹1,988.4 crore against ₹1,770 crore in the year-ago period.
At the operating level, EBITDA surged 31.7% to ₹435 crore in the second quarter of this fiscal over ₹330.2 crore in Q2 of FY24.
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The EBITDA margin stood at 21.9% in the reporting quarter against 18.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Fortis Healthcare reported a 13.9% growth in Q2 FY25 revenue for its hospital business, reaching ₹1,654.7 crore, up from ₹1,452.6 crore in Q2 FY24. Operating margins in the hospital segment also improved, standing at 21.4% this quarter compared to 18.4% in the same period last year. The revenue growth was driven by a 7.6% increase in average revenue per occupied bed (ARPOB) and higher occupancy rates.
The hospital business saw strong performance across its top six medical specialties — oncology, gastroenterology, neurosciences, renal sciences, orthopaedics, and cardiac sciences — which collectively grew by 13.6% YoY. Key surgical procedures, particularly in neurosciences and robotic surgeries, witnessed a significant increase in volumes, growing 21% and 57% YoY, respectively.
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Additionally, revenues from digital channels such as the website, mobile app, and digital campaigns grew by 30.1% YoY and now contribute 29.3% to overall hospital revenues, up from 25.6% in Q2 FY24. Revenue growth was also notable across major facilities, with centres in Shalimar Bagh, Mohali, and Mulund seeing increases of 25%, 21%, and 20%, respectively.
The diagnostic business' gross revenues reached ₹372.5 crore in Q2 FY25, up from ₹360.3 crore in Q2 FY24. Operating EBITDA margins, based on gross revenues, improved to 21.5% in Q2 FY25 from 17.2% a year ago, and further excluding one-offs, the margin stood at 24% compared to 22.7% in Q2 FY24.
Fortis continued expanding its diagnostics network, with the number of customer touch points (CTPs) reaching 4,085 by September 30, 2024. Agilus, Fortis's diagnostics brand, conducted approximately 11.11 million tests this quarter, up from 10.59 million in Q2 FY24. Revenue from preventive diagnostics in Agilus’ portfolio grew 20% year-on-year, now contributing 12% to operating revenues, an increase from 10% in Q2 FY24.
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Financially, Fortis Healthcare’s net debt was reduced to ₹281 crore as of September 30, 2024, with a net debt to EBITDA ratio of 0.16x, down from 0.29x the previous year. The net debt-to-equity ratio also improved to 0.03x from 0.05x, reflecting the company’s strengthened balance sheet.
The results came after the close of the market hours. Shares of Fortis Healthcare Ltd ended at ₹620.90, down by ₹2.65, or 0.42%, on the BSE.
